A recent study from the Wharton School found that making more money really does make people happier. At the same time, though, having more money can actually increase the risk of having marital problems and leave you at a higher risk for divorce.
Whether or not the above studies ring true in your own life, one thing is for certain: high net worth divorce can get incredibly complicated.
If you are undergoing a transition in life, it’s important to have an experienced divorce team on your side to help protect your current and future well-being. During such an emotional and difficult time, it’s important to work with professionals who can help paint an objective picture of your options.
Are you wondering what the do’s and don’ts are when it comes to a high net worth divorce? Let’s take a look at what you need to know.
Don’t Let the Prospect of Divorce Immobilize You
The notion of ending a relationship can be filled with lots of contradictory emotions. It can be chaotic, traumatic, and overwhelming.
In the face of such an intense life change, it’s possible to feel immobilized by the whole situation.
This can be particularly true when dealing with a high net worth divorce. Typically, at least one partner is financially sophisticated. While there are many benefits to being wealthy, it can also lead to a much more complicated divorce.
Don’t let the sense of how complicated your finances leave you feeling helpless during the process. Instead, you want to proactively and quickly seek the advice of professional high net-worth separation lawyers.
Whether you are the one serving papers or you expect to receive papers, it’s best to begin your search for an experienced lawyer that you trust and feel comfortable working with right away.
When you hire a knowledgeable attorney, they will help you gather information through the help of a forensic accountant. This can help you build a detailed and comprehensive picture of your marital and financial situation.
Don’t Let Emotions Take Control of Your Actions
There are so many different emotions that are commonly experienced during a divorce. Ultimately, there’s no way around the reality that it can be an emotionally devastating season of life.
If your spouse has initiated a divorce against you, it can feel shocking and leave you feeling betrayed and like your life is out of your control. It is easy and even understandable to be overcome with conflicting emotions such as anger, insecurity, a desire for revenge, and a desire to reconcile. If there are children involved, it’s easy to get overwhelmed by the thought of the negative consequences of divorce on them.
If you are the initiator of a divorce, it can leave you feeling both fearful and relieved. You might find yourself feeling guilty, impatient, doubtful, or resentful.
These emotions are all a part of the process, and there is nothing wrong with letting yourself feel your emotions as they arise. However, emotions are best left out of the process of divorce.
What happens if you let emotions control your actions? You might find yourself agreeing to settlement terms out of guilt or just to get the process over with so you can move on with your life. However, this is ill-advised and it’s best to view your divorce much like you would the dissolution of a business.
It won’t serve you, in the long run, to agree to settlement terms just so the divorce doesn’t drag on. It also won’t serve you to try to enact revenge on your spouse through the divorce process.
It might come across as quite cold to discuss ending a marriage in the same way you would dissolving a business. However, an experienced high net worth divorce lawyer can provide you with an objective perspective on your situation to ensure that you are protecting your future financial needs. They will help guide you through all of the short and long-term implications of different settlement options.
Are you wondering what some of the most common money mistakes people to make when they’re getting divorced? Check out this article.
Don’t Make Any Significant Financial Decisions Without Consulting Your Divorce Team
If you’re a high-net-worth individual that is beginning spouse separation, it’s easy to panic. The threat of divorce leaves you with visions of financial destitution. However, it’s never a good idea to try and devalue, hide, or shuffle assets and finances when you are in the midst of a divorce.
Trying to conceal or hide assets can end up leaving you in a mess of trouble. It can destroy your credibility and lead to worse outcomes for your personal finances in the divorce.
Beyond it being morally questionable to hide assets in this way, there’s also a very low likelihood you would get away with it. The world today is extremely connected. Plus, there’s a good chance that your spouse has hired a team of their own to look out for you making any financial movements in this type of way.
Instead, you should make sure you consult with your divorce team before making important financial decisions. Rather than taking matters into your own hands out of a sense of panic, invest in a divorce team that you can trust to protect your interests.
Don’t Pick High Net Worth Divorce Lawyers on a Whim
Do the prospects of getting divorced have left you with feelings of anger, resentment, and revenge? If so, you might be tempted to find an attorney who has a reputation for being the meanest lawyer in town. The reality, though, of hiring this type of lawyer that aims to destroy your spouse financially on your behalf is ultimately just in business for themself.
It’s important to remember that every divorce is unique to your situation. It’s essential that you find a lawyer that you feel comfortable working with and that you trust is working to create the best possible outcome for your financial future.
There’s nothing wrong with asking friends for recommendations as a starting point in your search. However, be sure to use your own judgment and do your own research. You’ll want to find an attorney who has experience with situations that are similar to yours, a great reputation, and a stellar track record.
Worrying about the outcome of a divorce can also leave you tempted to try and find the cheapest divorce lawyer you can get. However, at the end of the day, you always get what you pay for. It could ultimately be very expensive for you to try and save money when it comes to your legal team.
When you’re dealing with a high net worth divorce, you want to find a lawyer that you trust has your best interests in mind. You don’t want a lawyer that is working towards their own bottom line and instead works hard to fight for your interests.
Don’t Forget About the Less Obvious Aspects of Your Finances
Another common and understandable mistake when it comes to divorce is for people to only think about liquid assets and physical property. However, there are a lot of other factors that you’ll want to consider as a part of your divorce.
The process of getting divorced isn’t just about figuring out how to divide up the money and assets you currently have. It also has to do with the present and future tax liabilities, potential income and expenses, ongoing obligations, and so much more.
This is one of the reasons why hiring the best divorce team is essential. Together with a trusted tax advisor and financial planner, your lawyer will help you navigate all of the tiniest details to ensure that no stone is left unturned. They will also help you understand the impact that your divorce can have on your present and future finances.
(Are you wondering what you need to know about custody in an Illinois divorce? This article can help walk you through Illinois custody law.)
We Are Here to Help You Find a Better Way Forward
At STG Divorce Law, we have extensive experience serving those who require specialized attention due to high net worth. Serving all of Chicago and its surrounding areas, we are here to ensure that your assets are protected during a divorce. We will help you strategize every financial decision to make sure that you receive the most beneficial outcome.
During a high net worth divorce, an experienced attorney can help you avoid unnecessary payments, taxes, and issues. If you’re looking for a high-caliber attorney with extensive experience, our law firm is here to serve you.Are you experiencing a transition in life and are searching for the right lawyer to help you navigate the divorce process? If so, contact us today to schedule a consultation.